Sack Hammond? He’s staying put, say his allies
PHILIP hammond remains unsackable despite his humiliating U-turn over a Budget tax raid on the self-employed, allies insisted last night.
The Chancellor’s political future was thrown into doubt on Wednesday after he was forced to abandon a £2billion hike in National insurance just a week after making it a central feature of his first Budget.
But one ally yesterday said there was ‘no credible alternative’ to take the Chancellor’s job. Theresa May ordered the climbdown to head off a Tory revolt over the measure, which broke a manifesto pledge that Ni rates would not be raised. At an 8am meeting on Wednesday, the Prime Minister is said to have told him: ‘We are reversing this – i don’t care how bad it is for you.’
The fiasco prompted speculation that Mr hammond could face the sack in an autumn reshuffle. But asked if she thought he should resign, Mrs May said: ‘i have absolute faith in the Chancellor’, adding that they had both agreed the change to uphold the ‘spirit’ of the Conservative manifesto.
Friends of Mr hammond also insisted that his position is secure, with No10 and 11 needing to remain united as the Brexit process begins later this month.
One said: ‘Some of the stuff about him being vulnerable is just complete tosh. i genuinely doubt whether his position has crossed her mind. There is no credible alternative.’
An ipsos Mori poll yesterday found dissatisfaction with the Chancellor’s performance has jumped 18 points to 46 per cent since November’s autumn statement, – giving him a net satisfaction rating of minus 12. The row over Ni has exposed tensions between No10 and the Treasury, which both sides are now keen to end.
Cabinet sources have accused Mr hammond of failing to see the move was a clear breach of a manifesto pledge not to raise income tax, Ni or VAT. But Treasury sources insist Mrs May was fully briefed on the measure – a claim accepted by No10.
Treasury officials yesterday said it was too early to say how the £2billion hole created by the Ni U-turn would be filled.